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Cross Collateralization - HELP

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sassysag1219

Guest
What is the name of your state? California

Im in the process of filing BK, with a non-attorney....so I need legal advise.
My question is, I was told by my bk preparer that if I were to file my personal loan for BK, which is linked to my auto loan, that I would still be able to file, as long as I "reaffirmed" the automobile..continue paying the car. I just contacted my credit union, (GASFCU) and they mentioned "cross-collaterization".....meaing that apparently I only got the loan because I had collateral (my auto), and if I file BK that they basically will take my car away from me. Can someone explain what this means, and can the reposses the car if I am reaffirming it??:

They are sending me a copy of a contract that apparently I signed agreeing to this, which I dont remember them mentioning by the way.

I only owe $2900 on the car...is it worth it to them to reposses it. Its a 92 lexus, with blue book value of probably $4000 if that....the car would need alot of body repairs/electronic

Please help.:confused:
 



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